Foreclosure can be a devastating experience for any homeowner, but not all foreclosures are conducted fairly or legally. At Freed Finance LLC, we specialize in identifying and challenging wrongful foreclosures, working to protect homeowners from unjust actions by lenders. A wrongful foreclosure occurs when the foreclosure process is carried out improperly, in violation of the borrower’s rights, or based on inaccurate or fraudulent information. Below, we outline the key issues we investigate when determining whether you have grounds to claim wrongful foreclosure.

1. Failure to Follow Proper Procedures

One of the most common causes of wrongful foreclosure is the lender’s failure to adhere to the required legal procedures. Foreclosure laws vary by state, but there are generally strict guidelines that lenders must follow. We examine the entire foreclosure process to ensure that:

• Proper Notice Was Given: Lenders are required to provide borrowers with specific notices, such as the Notice of Default and Notice of Sale, within legally mandated timeframes. If these notices were not provided or were delivered late, it could be grounds for a wrongful foreclosure claim.
• Correct Procedures Were Followed: Each step in the foreclosure process must be conducted according to state law. This includes timelines for filing documents, conducting the sale, and handling the property. Any deviation from these procedures could invalidate the foreclosure.

2. Errors in Loan Documentation

Errors or discrepancies in the loan documentation can also lead to wrongful foreclosure. We meticulously review your mortgage and foreclosure documents to identify:

• Incorrect or Missing Signatures: All loan documents must be properly signed by the appropriate parties. If any signatures are missing or forged, it could be grounds for challenging the foreclosure.
• Misapplication of Payments: We investigate whether your mortgage payments were correctly applied. In some cases, payments may have been misapplied to the wrong account or not credited at all, leading to an incorrect claim of default.
• Inaccurate Loan Balance: The lender must accurately calculate the amount owed, including principal, interest, fees, and penalties. Any discrepancies in the loan balance could result in an improper foreclosure.

3. Mortgage Servicing Errors

Mortgage servicers, the companies that manage your loan payments, play a critical role in the foreclosure process. However, servicing errors are a common cause of wrongful foreclosure. We look for:

• Failure to Offer Loss Mitigation: Under federal law, servicers are required to offer loss mitigation options, such as loan modifications or repayment plans, to borrowers facing default. If the servicer failed to offer these options or denied your application without a valid reason, it could be grounds for a wrongful foreclosure claim.
• Dual Tracking: Dual tracking occurs when a servicer continues to pursue foreclosure while simultaneously processing a loan modification or other loss mitigation request. This practice is illegal under federal regulations and can be a basis for challenging the foreclosure.
• Improper Fees and Charges: Servicers sometimes impose unauthorized fees or inflate charges, contributing to an inflated loan balance. We review your loan history to identify any improper fees that may have contributed to the default.

4. Fraud or Misrepresentation by the Lender

Fraudulent actions or misrepresentations by the lender can also lead to wrongful foreclosure. We investigate whether the lender engaged in any of the following:

• False Claims of Default: In some cases, lenders may falsely claim that a borrower is in default when they are not. This can occur due to miscommunication, errors in record-keeping, or intentional fraud.
• Predatory Lending Practices: Predatory lending involves deceptive, unfair, or fraudulent practices by lenders during the loan origination process. This can include misrepresenting the terms of the loan, inflating property values, or pushing borrowers into loans they cannot afford. If predatory lending is identified, it may form the basis of a wrongful foreclosure claim.
• Improper Assignment of Mortgage: The transfer of your mortgage from one lender to another must be properly documented. If the assignment was not conducted correctly, or if the entity foreclosing on your home does not have legal standing, the foreclosure may be wrongful.

5. Lack of Standing to Foreclose

For a foreclosure to be valid, the entity initiating the foreclosure must have legal standing, meaning they must be the rightful holder of the mortgage or deed of trust. We examine:

• Chain of Title Issues: The chain of title refers to the history of ownership and transfer of the mortgage. We review the chain of title to ensure that the entity foreclosing on your home has the legal right to do so. If the chain of title is broken or unclear, the foreclosure may be invalid.
• Robo-Signing: Robo-signing refers to the practice of signing foreclosure documents without verifying the accuracy of the information or without proper authority. This practice has led to numerous wrongful foreclosures and is a serious issue that we investigate.

6. Breach of Contract

Your mortgage agreement is a binding contract between you and the lender. If the lender breaches any terms of this contract, it could be grounds for a wrongful foreclosure claim. We analyze the contract to identify:

• Violations of the Mortgage Agreement: We review the terms of your mortgage to determine if the lender has violated any provisions, such as failing to provide notice of default or not allowing the required grace period for missed payments.
• Improper Acceleration of the Loan: Some mortgages include a clause that allows the lender to demand immediate payment of the entire loan balance after a default. However, this clause must be invoked according to the terms of the contract. If the lender improperly accelerates the loan, it could be grounds for challenging the foreclosure.

Conclusion

Facing foreclosure is a daunting experience, but if you suspect that your foreclosure may be wrongful, it’s essential to seek legal assistance. At Freed Finance LLC, we are dedicated to protecting homeowners from unjust and illegal foreclosures. Our experienced team thoroughly investigates each case, examining all aspects of the foreclosure process to identify any potential issues that could form the basis of a wrongful foreclosure claim.

If you believe you’ve been wrongfully foreclosed upon or are at risk of wrongful foreclosure, contact us today. We’re here to help you understand your rights, explore your options, and fight to protect your home.